At $10/gallon gas, you will see people riding scooters and bicylces to work. You will also see people freezing to death in their homes. So, yes, the Economy will tank.
The latter is what bothers me. Freezing to death. This winter will bring about losses that we never imagined. Imagine monthly oil bills over $1000. I wonder if people will pick apart their homes for wood, if they even have a fireplace.
I, for one, will be opening my door to friends and family to stay. Hopefully, all of us together can afford a heating bill for one house.